25 LC 59 0034
House Bill 597
By: Representatives Donatucci of the 105
th
, McCollum of the 30
th
, Schofield of the 63
rd
,
Seabaugh of the 34
th
, and Scott of the 76
th
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
1
relating to imposition, rate, computation, exemptions, and credits relative to income taxes,2
so as to enact the "Fire and Emergency Services Support Act"; to provide for tax credits for3
certain contributions made by taxpayers to certain local fire rescue foundations; to provide4
for an aggregate annual limit; to provide for terms and conditions; to provide for applications5
and certifications; to provide for the revocation of qualified status; to provide for certain6
penalties; to provide for confidentiality; to require annual reporting; to provide for rules and7
regulations; to provide definitions; to provide for construction; to provide for a short title;8
to provide for related matters; to provide for an effective date and applicability; to repeal9
conflicting laws; and for other purposes.10
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11
SECTION 1.12
This Act shall be known and may be cited as the "Fire and Emergency Services Support13
Act."14
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SECTION 2.
15
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to16
imposition, rate, computation, exemptions, and credits relative to income taxes, is amended17
by adding a new Code section to read as follows:18
"48-7-29.27.
19
(a) As used in this Code section, the term:20
(1) 'Fire rescue foundation' means any domestic nonprofit corporation with the sole21
function of supporting one local fire rescue unit through a formal relationship recognized22
by such local fire rescue unit and which maintains nonprofit status under23
Section 501(c)(3) of the Internal Revenue Code and tax exempt status under Code24
Section 48-7-25.25
(2) 'Local fire rescue unit' means any agency, office, or department of a county,26
municipality, or consolidated government of this state whose primary functions include27
the protection of life and property against fire, explosions, hazardous materials, and other28
hazards.29
(3) 'Qualified contributions' means the preapproved contribution of funds by a taxpayer30
to a qualified fire rescue foundation under the terms and conditions of this Code section.31
(4) 'Qualified expenditures' means expenditures made by a qualified fire rescue32
foundation:33
(A)(i) For salary supplements or training provided directly to fire rescue personnel34
employed by the local fire rescue unit affiliated with such qualified fire rescue35
foundation; or36
(ii) For the purchase, lease, maintenance, or improvement of equipment to be used37
by such personnel; or38
(B) To cover any costs incurred by the local fire rescue unit in collaborating with other39
agencies to address emergency situations, provided that such costs shall not include40
salaries or other regular compensation.41
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(5) 'Qualified fire rescue foundation' means any fire rescue foundation that has been42
designated as the sole local fire rescue foundation for a single local fire rescue unit and43
has been certified and listed by the commissioner pursuant to subsection (d) of this Code44
section.45
(b)(1) The aggregate amount of tax credits allowed under this Code section shall not46
exceed $75 million per calendar year. Each qualified fire rescue foundation shall be47
limited to accepting $3 million per year of contributions made under this Code section.48
(2) Subject to the aggregate limit provided in paragraph (1) of this subsection, each49
taxpayer shall be allowed a credit against the tax imposed by this chapter for qualified50
contributions made by the taxpayer as follows:51
(A) In the case of a single individual or a head of household, the actual amount of52
qualified contributions made or $5,000.00 per tax year, whichever is less;53
(B) In the case of a married couple filing a joint return, the actual amount of qualified54
contributions made or $10,000.00 per tax year, whichever is less;55
(C) Anything to the contrary contained in subparagraph (A) or (B) of this paragraph56
notwithstanding, in the case of an individual taxpayer who is a member of a limited57
liability company duly formed under state law, a shareholder of a Subchapter 'S'58
corporation, or a partner in a partnership, the actual amount of qualified contributions59
it made or $10,000.00 per tax year, whichever is less; provided, however, that tax60
credits pursuant to this paragraph shall only be allowed for the portion of the income61
on which such tax was actually paid by such member of the limited liability company,62
shareholder of a Subchapter 'S' corporation, or partner in a partnership; or63
(D) A corporation or other entity not provided for in subparagraphs (A) through (C)64
of this paragraph shall be allowed a credit against the tax imposed by this chapter, for65
qualified contributions in an amount not to exceed the actual amount of qualified66
contributions made or 75 percent of such corporation's or other entity's income tax67
liability, whichever is less.68
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(3) Nothing in this Code section shall be construed to limit the ability of a local fire69
rescue unit to receive gifts, grants, and other benefits from any source allowed by law;70
provided, however, that no local fire rescue unit shall, under this Code section, accept or71
receive more than $3 million in contributions in any calendar year.72
(c) The commissioner shall establish a web page on the department's public website for73
the purpose of implementing this Code section. Such web page shall contain, at a74
minimum:75
(1) The application and requirements to be certified as a qualified fire rescue foundation;76
(2) The current list of all qualified fire rescue foundations and their affiliate fire rescue77
units;78
(3) The total amount of tax credits remaining and available for preapproval for each year;79
(4) A web based method for taxpayers seeking the preapproval status for contributions;80
and81
(5) The information received by the department from each qualified fire rescue82
foundation pursuant to paragraph (1) of subsection (g), except for division (g)(1)(B)(iv)83
of this Code section.84
(d) Any qualified fire rescue foundation shall be certified by the commissioner following85
the commissioner's receipt of a properly completed application and after the commissioner86
has confirmed that a single local fire rescue unit has validly designated the applicant as its87
sole fire rescue foundation. Such application shall be prescribed by the commissioner and88
shall include an agreement by the applicant to fully comply with the terms and conditions89
of this Code section.90
(e)(1) Prior to making a contribution to any qualified fire rescue foundation, the taxpayer91
shall electronically notify the department, in a manner specified by the commissioner, of92
the total amount of contribution that such taxpayer intends to make to such qualified fire93
rescue foundation.94
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(2) Within 30 days after receiving a request for preapproval of contributions, the95
commissioner shall preapprove, deny, or prorate requested amounts on a first come, first96
served basis and shall provide notice to such taxpayer and the qualified fire rescue97
foundation of such preapproval, denial, or proration. Such notices shall not require any98
signed release or notarized approval by the taxpayer. The preapproval of contributions99
by the commissioner shall be based solely on the availability of tax credits subject to the100
limits established under paragraph (1) of subsection (b) of this Code section.101
(3) Within 60 days after receiving the preapproval notice issued by the commissioner102
pursuant to paragraph (2) of this subsection, the taxpayer shall contribute the preapproved103
amount to the qualified fire rescue foundation or such preapproved contribution amount104
shall expire. The commissioner shall not include such expired amounts in determining105
the remaining amount available under the aggregate limit for the respective calendar year.106
(f)(1) Each qualified fire rescue foundation shall issue to each contributor a letter of107
confirmation of contribution, which shall include the taxpayer's name, address, tax108
identification number, the amount of the qualified contribution, the date of the qualified109
contribution, and the total amount of the credit allowed to the taxpayer.110
(2) In order for a taxpayer to claim the tax credit allowed under this Code section, all111
such applicable letters as provided for in paragraph (1) of this subsection shall be attached112
to the taxpayer's tax return. When the taxpayer files an electronic return such113
confirmation shall only be required to be electronically attached to the return if the114
Internal Revenue Service allows such attachments to be affixed and transmitted to the115
department. In any such event, the taxpayer shall maintain such confirmation and such116
confirmation shall only be made available to the commissioner upon request.117
(3) The commissioner shall allow tax credits for any preapproved contributions made to118
a local fire rescue foundation at the time the contributions were made if such foundation119
was a qualified fire rescue foundation at the time of the commissioner's preapproval of120
the contributions and the taxpayer has otherwise complied with this Code section.121
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(g)(1) Each qualified fire rescue foundation shall annually submit to the department:122
(A) A complete copy of its IRS Form 990 and other applicable attachments, or for any123
qualified fire rescue foundation that is not required by federal law to file an IRS124
Form 990, such foundation shall submit to the commissioner equivalent information on125
a form prescribed by the commissioner; and126
(B) A report detailing the contributions received during the calendar year pursuant to127
this Code section on a date determined by, and on a form provided by, the128
commissioner which shall include:129
(i) The total number and dollar value of individual contributions and tax credits130
approved. Individual contributions shall include contributions made by those filing131
income tax returns as a single individual or head of household and those filing joint132
returns;133
(ii) The total number and dollar value of corporate contributions and tax credits134
approved;135
(iii) The total number and dollar value of all qualified expenditures made; and136
(iv) A list of contributors, including the dollar value of each contribution and the137
dollar value of each approved tax credit.138
(2) Except for the information published in accordance with paragraph (c) or (h) of this139
Code section, all information or reports relative to this Code section that were provided140
by qualified fire rescue foundations to the department shall be confidential taxpayer141
information, governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whether such142
information relates to the contributor or the qualified fire rescue foundation.143
(h) Each qualified fire rescue foundation shall publish on its public website a copy of its144
affiliated local fire rescue unit's prior year's annual budget containing the total amount of145
funds received from its local governing body. If a qualified fire rescue foundation does not146
maintain a public website, such information shall be otherwise made available by the147
qualified fire rescue foundation to the public upon request.148
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(i)(1) A taxpayer shall not be allowed to designate or direct the taxpayer's qualified149
contributions to any particular purpose or for the direct benefit of any particular150
individual.151
(2) A taxpayer that operates, owns, is affiliated with, or is a subsidiary of an association,152
organization, or other entity that contracts directly with a qualified fire rescue foundation153
or the local fire rescue unit that is affiliated with a qualified fire rescue foundation shall154
not be eligible for tax credits allowed under this Code section for contributions made to155
such qualified fire rescue foundation.156
(3) In soliciting contributions, no person shall represent or direct that, in exchange for157
making qualified contributions to any qualified fire rescue foundation, a taxpayer shall158
receive any direct or particular benefit. The status as a qualified fire rescue foundation159
shall be revoked for any fire rescue foundation determined to be in violation of this160
paragraph and shall not be renewed for at least two years.161
(j)(1) Qualified contributions shall only be used for qualified expenditures. Each162
qualified fire rescue foundation shall maintain accurate and current records of all163
expenditures of qualified contributions and provide such records to the commissioner164
upon his or her request.165
(2) A qualified fire rescue foundation that fails to comply with any of the requirements166
under this Code section shall be given written notice by the department of such failure167
to comply by certified mail and shall have 90 days from the receipt of such notice to168
correct all deficiencies.169
(3) Upon failure to correct all deficiencies within 90 days, the department shall revoke170
the fire rescue foundation's status as a qualified fire rescue foundation and such entity171
shall be immediately removed from the department's list of qualified fire rescue172
foundations. All applications for preapproval of tax credits for contributions to such fire173
rescue foundation under this Code section made on or after the date of such removal shall174
be rejected.175
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(4) Each fire rescue foundation that has had its status revoked and has been delisted176
pursuant to this Code section, shall immediately cease all expenditures of funds received177
relative to this Code section, and shall transfer all of such funds that are not yet expended,178
to a properly operating qualified fire rescue foundation within 30 calendar days of its179
removal from the department's list of qualified fire rescue foundations.180
(k)(1) No credit shall be allowed under this Code section to a taxpayer for any amount181
of qualified contributions that were utilized as deductions or exemptions from taxable182
income.183
(2) In no event shall the total amount of the tax credit under this Code section for a184
taxable year exceed the taxpayer's income tax liability. Any unused tax credit shall be185
allowed the taxpayer against the succeeding three years' tax liability. No such credit shall186
be allowed the taxpayer against prior years' tax liability.187
(l) The commissioner shall promulgate rules and regulations necessary to implement and188
administer the provisions of this Code section."189
SECTION 3.190
This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years191
beginning on or after January 1, 2026.192
SECTION 4.193
All laws and parts of laws in conflict with this Act are repealed.194
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